Rua Riachuelo, 366 Centro
Rio de janeiro - Brazil
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+55 21 976 723 023
Rua Riachuelo, 366 Centro
Rio de janeiro - Brazil
9:00AM to 7:00 PM
Moday To Friday
+55 21 976 723 023
Secure Payment Methods Brazil - Avoid fraud and minimize financial risks when importing from Brazil with reliable and secure payment methods.
Importing agricultural commodities from Brazil can be a highly profitable opportunity—but it also comes with significant risks, especially when it comes to international payments. How can you ensure the supplier will deliver exactly what was promised? And how can you protect your capital from fraud or default?
In this article, you’ll discover the most secure payment methods used in international trade, especially for commodities like corn, soybeans, sugar, beef, and chicken. We’ll explain how each method works, the benefits, and when to use them. Ready to trade smarter and safer? Let’s dive in.
Contents
Reduce financial risks – protect yourself against fraud and contract breaches.
Bank and legal security – based on internationally recognized instruments.
Build trust between buyer and supplier – essential for long-term business.
Legal and documentary proof – ideal for audits and compliance processes.
A Letter of Credit (LC) is a bank-issued instrument that guarantees payment to the exporter as long as all terms and required documents are met.
The importer requests the LC from their bank.
The LC is sent to the exporter’s bank in Brazil.
The exporter ships the goods and submits all required documents.
The bank reviews the documents and releases payment.
High legal and financial security.
Reduces the risk of non-delivery or fraud.
Excellent for first-time transactions and large shipments.
High-value cargo.
First-time deals with new suppliers.
When required by your local laws or investors.
A Standby Letter of Credit (SBLC) is a bank guarantee that acts like financial insurance. It’s used only if the buyer fails to make payment.
The buyer arranges the SBLC with their bank.
The SBLC is sent to the supplier’s bank.
It is only activated in case of non-payment.
Less bureaucracy than a traditional LC.
Lower banking costs.
Trusted solution for experienced partners.
An Escrow Account is a third-party service (bank or licensed firm) that holds the buyer’s payment until the supplier fulfills the terms of the contract.
Both parties agree to use an escrow service.
The buyer transfers the funds to the escrow account.
Funds are released only after shipment confirmation.
Reduces risk for both parties.
Transparent and trackable.
Ideal for new business relationships or medium-sized purchases.
Payment methods linked to the shipment of goods.
COB (Cash on Board): payment is made after the Bill of Lading confirms shipment.
Partial Advance Payment: the buyer pays a deposit (e.g., 20–30%) and the remaining balance after shipment.
Improves exporter’s cash flow.
No need for complex banking instruments.
Lower operational costs for both sides.
We recommend that you also read: How to Import Agricultural Commodities from Brazil Safely and Profitably
A SWIFT or Telegraphic Transfer (TT) is a direct international bank-to-bank payment method.
Offers no built-in guarantees for the buyer.
Trust in the supplier is essential.
Best suited for long-term, reliable relationships.
Carefully verify bank account details.
Confirm account ownership.
Start with small trial shipments.
| Method | Security Level | Cost | Best For |
|---|---|---|---|
| Letter of Credit (LC) | Very High | High | High-value loads / new suppliers |
| SBLC | High | Medium | Recurring transactions |
| Escrow | High | Medium | New partnerships |
| COB / Partial Advance | Medium | Low | Fast, small to medium transactions |
| SWIFT / TT | Low | Low | Trusted, long-term relationships |
For new suppliers: prioritize LC or Escrow.
For recurring partners: SBLC or COB works well.
For small test shipments: partial advance with balance after shipment.
For bulk cargo (like vessel shipments): use confirmed, irrevocable LC.
It’s a bank guarantee that ensures the exporter gets paid only after meeting the contract terms and submitting the correct documents.
An LC is a payment method, while an SBLC is a financial guarantee used only if the buyer doesn’t pay.
Yes. Escrow services provide a neutral, secure holding for funds until the goods are confirmed as shipped.
The Letter of Credit (LC) is the most secure option, especially when confirmed by a second bank.
Choosing the right payment method is just as important as negotiating a good price. Secure options like Letters of Credit, SBLCs, Escrow Accounts, and Cash on Board ensure your investment is protected, your goods are shipped properly, and your relationship with Brazilian suppliers is built on trust and transparency. If you’re importing agricultural commodities, don’t take unnecessary risks. Choose safety from your very first transaction.
Mello Commodity publishes educational articles that aim to guide importers of agricultural commodities on: Brazilian crops, market information, prices, scams, etc.
Some articles may contain affiliate links that provide access to several SUPPLIER GUIDES for Brazilian agricultural commodities. The commission paid to the Mello Commodity team is used to cover production costs and will not impact the cost of acquiring the material.
If you are interested in negotiating the direct import of sugar, soybeans or yellow corn, simply click on the Quotation menu and send us your order details.
Brazilian, graduated in Marketing, Specialist in Service Management and Strategic Communication.
Important International Negotiator in the commercialization of Brazilian agricultural commodities such as: Sugar, Soybeans and Corn.
Owner of Mello Commdity, she has gained great prominence on the internet in recent years by promoting educational articles for importers of Brazilian agricultural commodities.
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